More office space is being brought to the market in Southern California. One building, a 58,193 square foot office campus in Costa Mesa, is currently on the market for $33.9 million, or about $582 per square foot, according to a property listing from CBRE.
Built in 1975, the four-building campus is located at 660 Baker Street and is currently owned by an entity that shares an address with El Segundo-based Dunbar Investments. According to public records, that entity purchased the property in 2018 for around $13.7 million.
Since then, the office campus has been renovated in 2019 to include approximately $12 million in capital improvements, $4.3 million worth of exterior renovations and $7.7 million worth of interior common area renovations.
The property is currently 100 percent occupied by a mix of tenants, including MemorialCare, Schiefer Media, Western Lighting and PV Labels Inc. In total, 11 tenants are located at the property, with the largest tenant occupying less than 17 percent of the campus.
The office campus is situated in one of Orange County’s prime retail and business corridors, with access to South Coast Plaza, one of the region’s largest shopping centers. The location also provides immediate access to Interstate 405 and State Route 55.
Despite current challenges for the office market, Orange County continues to perform well, with recent metrics showing an 11.9 percent vacancy rate for office properties in the region. This has stayed fairly consistent quarter-over-quarter, according to CBRE. However, lease rates continue to increase slightly, with CBRE showing an increase by $0.02 quarter-over-quarter to approximately $2.94 per square foot on average.
“Orange County is among the top investment market in the Americas in 2022 among investors, reflecting the county’s strong absorption, low vacancy and sustained rent growth. With strong employment and an attractive quality of life, Orange County is a highly sought-after gateway market,” the listing states.
